Declaring Your Financial Income (Dividends, Capital Gains) in France

Introduction

In France, declaring your financial income, such as dividends and capital gains, is an essential step to comply with the tax administration. Whether you are a private investor or an active trader, understanding the taxation rules applicable to this income is crucial to optimize your taxation and avoid unpleasant surprises. This article guides you step by step in declaring your financial income, focusing on dividends and capital gains, their declaration methods, as well as the associated tax rates.

The different types of financial income concerned

Financial income includes several categories, but the most common for individuals are:

• Dividends: income distributed by companies to shareholders, derived from profits made.
• Capital gains on securities: gains made from the sale of stocks, bonds, or fund shares.

This income is subject to specific taxation that varies depending on the type of product, the amount, and the tax regime chosen by the taxpayer.

The taxation of dividends in France

Since the implementation of the Flat Tax (PFU) in 2018, dividends are by default taxed at a global rate of 30%, including:

• 12.8% income tax,
• 17.2% social contributions.

This taxation is applied automatically when dividends are paid by the company or the financial intermediary. However, the taxpayer can opt for taxation under the progressive income tax scale if it is more favorable.

In this case, a 40% allowance applies on the gross amount of dividends before their inclusion in taxable income. Social contributions must also be paid on the